Uruguay Offshore Green Hydrogen Project
The Uruguayan state-owned oil refinery, ANCAP, launched its “H2U Offshore” project to produce green hydrogen from renewable sources. The project seeks to further position Uruguay as a leader in green energy as the country looks to achieve carbon neutrality by 2050. The purpose of the project is to generate green hydrogen for export from offshore wind farms.
This project builds on the Ministry of Energy’s green hydrogen pilot project launched in 2021 to produce and distribute hydrogen for use in the transportation sector. The “H2U Offshore” project will offer between 8 to 16 blocks off the coast of Uruguay. The first block is located more than 10 km from the Uruguayan coast at a depth of between 10 and 30 meters. The second block is located more than 100 km from the Uruguayan coast with a maximum depth of 50 meters.
The project investment is estimated to be between $1- $3 billion USD. The concession of the blocks will be for a term of 25 years and include the installation of the platform, the hydrolyzer, and green ammonia plant. ANCAP is interested in meeting multinational companies and private investors with experience in this field, as well as large oil companies with experience in hydrogen production. Companies must present a scope of work, that includes ANCAP participation, in the project. When ANCAP receives enough interested parties, it will release a tender. The bidding process will last from 8 months to a maximum of 2 years.
Studies carried out in 2020 indicate that Uruguay’s offshore wind generation potential is around 300GW. The 500 km2 areas have a nominal capacity of 1.25 GW of power and a production capacity of at least 100 tons of hydrogen per year. During the project, ANCAP will offer technical capacity in complex installation processes, knowledge and experience in geology and offshore areas around Uruguay, and in contracts and negotiations with oil majors.
For further information please contact Department of Commerce in Uruguay: Office.Montevideo@trade.gov.